Diversified Gas & Oil Share Discussion Threads

[alotto] 01/2/2020 14:56

The bargain purchase figure wont be' in the next balance sheet which will make this FY figures look worse than last year sending the share price down.
You need to hold this stock for a good 5 years to ride out all the volatility and compound the dividends.

[podgyted] 01/2/2020 10:02

Another thought.

When DGOC bought the various assets the assets were valued at fair value and the discount they got to purchase price was booked as a bargain purchase gain in the P&L.
The fair value will have been assessed on future gas prices which will have been higher back then.

Does anyone consider there to be a risk of impairments in the future? I note they are trading below TNAV.

[podgyted] 01/2/2020 09:47

You have articles like this:-



Which could be a blessing or a curse - cheap asset purchases (but at what level would the market stomach an equity raise on a big deal) vs lower gas prices (presumably current hedging is not available at anywhere near the levels for those in place).

Like many I suspect I'm looking for a re-entry point but looking at the share price graph, HH prices and coronavirus, it doesn't look promising at the moment.

[simplemilltownboy] 31/1/2020 15:25

Alotto, sinking with gas prices and overall sentiment. I'm looking for a re-entry point. I'm really surprised how much this has dropped TBH given the good trading update and confirmation of hedging. Irrational markets for you. GLA

[alotto] 31/1/2020 15:08

Sinking... somebody in the know might know something nesting coming with the trade update in March

[alotto] 29/1/2020 16:16

I think the gas price hedged at 2.70 which is a good price compared to market and fear of hedging at lower price in future. Strengthening of sterling could be an issue too

[janekane] 29/1/2020 15:52

Why has the market lost confidence in this once decent company

[alotto] 27/1/2020 16:30

Arent we supposed to sell at a good price?

[trulyscrumptious] 27/1/2020 13:24

Not such an excellent share price today, I sold some of mine.

[johnrxx99] 27/1/2020 08:29

Yes but whe is the LSE listing?

[lab305] 27/1/2020 07:53

Excellent update with most production hedged for the whole of this year.They can certainly ride the storm of low gas prices for some time whilst having the ability to buy up distressed assets from others.
I note that there have been no announcements of late on the over 65% of the company owned by directors and institutions . The damage to the share price must in my view be retail investors selling. Roll on the premium listing with some new and hopefully more stalwart investors.

[2solaris] 25/1/2020 18:46

He is spamming all oil boards.
That said, this can't fall much further as the dividend will become outrageously high and that will attract buyers, including a top-up from me.

[otemple3] 25/1/2020 09:53

Totally unrelated ramping - he is posting it all over the place

[alotto] 25/1/2020 09:46

Cant read it. Can you please summarise the content?

[laptop15] 25/1/2020 09:19

https://twitter.com/laptop1515/status/1220699056936300544?s=19

[johnrxx99] 24/1/2020 04:22

This is worrying. A good divi must be weighed against erosion of CV: 10% return won't replace 20% fall in value. Indeed, since May 18 the share price has fallen 28%.

I hold at the moment but under close watch

[alotto] 23/1/2020 19:30

Dipende on what metrics you use to value a compan,pe, dividend yield ROE etc etc
With a pe of 12 the share price would be 4 fold but the yield about 2.5%.
I'd be happy to see the shares trading at about 140 and get the dividends for a few years

[lab305] 23/1/2020 18:40

True but their pe is around 12 and DGOC around 3 .

[lab305] 23/1/2020 14:28

Alotto this share is massively undervalued on any metric. They can borrow money very cheaply only because after due diligence the banks view them as a good bet.Not only are they paying an excellent dividend but they are paying down debt aswell. I cannot understand why the stock is not trading at somewhere near double today's price.
The very low price of gas will represent some golden buying opportunities to DGOC . There are some distressed assets that will come cheap they will have the expertise and cost synergies to run profitability. This will be a good year for them starting with the results next month. I hold.

[alotto] 23/1/2020 12:46

I am afraid the drop will continue in the coming days, as it happened around the start of June 19.. this stock is not very lucky, the gas price in the Appalachia region is not doing well neither